China has been notably relaxed about her own people acquiring gold, and the government itself appears to be absorbing all of China’s mine output. Russia is also building her official reserves from her own mine supply. The result over time has been the transfer of above-ground gold stocks towards these countries and their allies. The geo-political implications are highly important, but have been ignored by western governments.
Physical demand remains robust globally and especially in China where Reuters report “stock loading in the market and physical buying in Shanghai.”
There is also the interesting trend of many western banks, some who are making loud bearish noises in public, quietly moving to offer their high net worth client’s storage in Zurich, Singapore and Hong Kong.
Smart money is still accumulating physical gold and the banks know this and realize that in order to retain clients and income they must offer bullion services and storage outside the still fragile banking system.
Bloomberg reports tonight that UBS has launched a gold vaulting service in Singapore and will make its bullion vaulting services available for clients in Singapore and Hong Kong. UBS joins Deutsche Bank and JP Morgan in offering bullion storage facilities in Asia.
Perhaps this is where the approximately 300 tons of gold drained from the GLD over the past 6 months was headed?
Edward Snowden has released his latest statement today via Moscow, and the NSA whistle-blower has lashed out directly at Obama and his administration:
The Obama administration is not afraid of whistleblowers like me, Bradley Manning or Thomas Drake. We are stateless, imprisoned, or powerless. No, the Obama administration is afraid of you. It is afraid of an informed, angry public demanding the constitutional government it was promised — and it should be.
Snowden’s full statement is below:
At the current $18 paper price of silver, nearly all the primary miners would be stating net income losses. Some of the miners may cut costs and spending to at least tread water, but other much higher cost miners would be severely impacted.
To be able to understand how $18 silver affects the miners, we have to figure out what break-even is for the individual company and the industry as a whole. My first attempt at calculating break-even was presented in my article The Complete Cost of Mining Silver.
What the Fed is doing to manipulate the precious metals lower while inflating the value of PAPER ENERGY IOU’s such as Treasuries, Bonds, MBS, Stocks, IRA’s, Pension Plans etc and etc, is actually creating an ever-increasing unstable financial system.
The best thing to do to take advantage of much lower silver prices, investors should be purchasing silver bullion and coins by the droves. Even though it seems as if the paper prices of silver can keep falling, it seems highly unlikely that the FED and Central Banks would be stupid enough to allow the bankruptcy the ENTIRE PRIMARY SILVER MINING INDUSTRY.
Our friend Megan Duffield from the Silver Circle movie has asked us to pass along the news to SD readers that the Silver Circle has been released today on video on demand platforms and iTunes, with the DVD/BlueRay release planned for later this summer.
Jim Sinclair sent subscribers an email alert over the weekend regarding Russia’s announcement that it will develop and launch a cash bullion market, stating that the development is the singular most important development in the gold market in my 53 years being involved in gold.
Sinclair goes on to state that the manipulators will be flattened in late 2014 after one more try to manipulate the price of gold.
Sinclair’s full alert is below:
If the economy is improving, then why aren’t things getting better for most average Americans? They tell us that the unemployment rate is going down, but the percentage of Americans that are actually working is exactly the same it was three years ago. They tell us that American families are in better financial shape now, but real disposable income is falling rapidly. They tell us that inflation is low, but every time we go shopping at the grocery store the prices just seem to keep going up. They tell us that the economic crisis is over, and yet poverty and government dependence continue to explode to unprecedented heights. There seems to be a disconnect between what the government and the media are telling us and what is actually true. With each passing day the debt of the federal government grows larger, the financial world become even more unstable and more American families fall out of the middle class. The same long-term economic trends that have been eating away at our economy like cancer for decades continue to ruthlessly attack the foundations of our economic system. We are rapidly speeding toward an economic cataclysm, and yet the government and most of the media make it sound like happy days are here again. The American people deserve better than this. The American people deserve the truth. The following are 36 hard questions about the U.S. economy that the mainstream media should be asking…
Gold & Silver COT Report 6/28/13
Commercials continued their pace during the reporting period and moved 9.25 million ounces towards becoming net long.
Large speculators cut their net long position by over 75% moving 15.33 million ounces towards becoming net short.
Small speculators moved over 6 million ounces net long.
The latest in a wave of scandals for the Obama administration has broken as investigative reporters for McClatchy have uncovered The Insider Threat Program, a secret anti-whistleblower initiative created by the Obama administration.
The program specifically targets whistle-blowers wishing to expose corruption and illegal practices by government agencies, equates media leaks with espionage, and like a page out of George Orwell’s 1984, mandates that government employees spy and snitch on each other or risk being criminally charged!
The Problems With Paper
Paper derivatives do not price in fundamentals. Nevertheless, price movements in paper products are shaping sentiment, and are moving the precious metals far off the radar screen as an attractive investment — except perhaps for the very few that see their intrinsic value.
All paper derivatives markets have ballooned so far from reality, that along with the rapidly expanding money supply, they seem to be gigantic bubbles in and among themselves.
Furthermore, the latest silver market rout indirectly serves to support the metal’s price in the long term by forcing numerous suppliers out of the market, as their production becomes increasingly uneconomic.
“The Critical Trend toward higher interest rates has begun,” Deepcaster has been saying for several weeks now. And yields on the most important rate in the world – the U.S. 10-year Treasury – have popped up to 2.6%ish from well below 2% just a few weeks ago.
And all this simply because The Fed announced a conditional (confirmed by Fed Governor Dudley) plan to begin tapering stimulus, later this year. But the initial Negative reaction to this conditional tapering plan was so severe – witness the consequent Bond and Equities Markets sell-offs – that The Fed will likely not be able to remove stimulus according to plan by 2014!
In any event, the consequences of this Climacteric Trend of increasing Interest Rates for Investors, Markets, and Economies are considerable regardless of whether The Fed tapers according to plan. Consider just Brazil, Australia, Japan, Spain, and Italy, as examples.
I had the chance to reconnect today with Peter Grandich, publisher of The Grandich Letter, for a powerful conversation on the gold market. Peter has issued spot-on market calls for decades now, beginning with the 87′ market crash, gold in 2003, and the stock market bottom in 2009.
Wednesday morning Peter issued a major new call entitled, “Gold ($1225) Bottom In Sight“, calling for a bottom in gold—likely within the next 48 hours. The thrust of that call is being led by cycles, sentiment, and market manipulation.
In discussing his new call, Peter indicated that, “Some [market] technical work came up this morning in a way that I haven’t seen in years…I’m an old fan of ‘Gann Angles’, [and] the combination of that, cycles work, and some sentiment indicators—suggested to me that within a couple of trading days…we would [see] a major bottom in the price [of gold].”